A Competitive Equilibrium Is a State of Affairs in Which

question 15

Multiple Choice

A competitive equilibrium is a state of affairs in which

• A) markets clear, and output is maximized.
• B) output is maximized, and all agents are equally well-off.
• C) all agents are equally well-off and agents are price-takers.
• D) agents are price-takers, and markets clear.
• E) output and total factor productivity are maximized.

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Definitions:

Lynch Mobs

Groups of people who take the law into their own hands to punish an individual, often without a fair trial, historically associated with racial violence in the United States.

Loose Cigarettes

Single cigarettes sold individually, often illegally, as they bypass taxation and standard packaging regulations.

Eric Garner

An African American man whose death during an arrest in New York City sparked nationwide protests and debates over police use of force and racial discrimination.

Informal Social Control

The unofficial mechanisms through which norms and behaviors are enforced in society, such as peer pressure or community socialization, rather than through legal or formal means.